When you’re told
that your college will be shutting down, there can be a lot of uncertainty
about what comes next. Here is some helpful advice to help you navigate the
situation.
If your school
announced that it is closing, they may offer you a “teach out,” to
complete your program and receive your degree or certificate.
- If you accept a
“teach-out” to complete your program at your school or another school, you will
be responsible for repaying your student loans.
- If you decline a
“teach-out” offer and the school closes, you may not have to pay back
your federal student loans. If you have private student loans you
may still be responsible for your private student loans. Some
states may have programs that assist students with private student loans in the
event of a school closure. Some private student lenders may offer options to
assist certain borrowers in this situation.
- If you later enroll in a similar
program at another school and receive credit for courses you already completed,
you may still need to pay back your loans.
